Indiana American Water on Friday filed a rate increase request with the Indiana Utility Regulatory Commission.
If its proposed rates are approved as sought, the bill for a residential customer using 4,000 gallons of water per month would increase about $14 per month when rates are fully implemented in 2025, the company said in a news release.
The company said it last filed for new rates in September 2018 and last implemented new rates in 2019.
Indiana American Water said it is seeking to increase revenues over a three step process through May 2025 that would result in $86.7 million of additional annual revenue when fully implemented.
The water company said its request was driven by $875 million in investment, as well as increases in the cost of procuring chemicals, goods and services.
“Indiana American Water has made significant investments in aging infrastructure and its treatment and distribution facilities to ensure service reliability, water quality, and fire protection capabilities that help protect customers and the communities we serve,” company President Matt Prine said in a statement.
Increases for residential wastewater customers will vary depending on the community served.
Saying that it recognizes affordability may still be an issue for some customers, the company says it is proposing a new rate design that provides 1,500 gallons of water usage at no additional cost above the fixed monthly customer charge for all water customers.
It says that would provide relatively low-cost basic water service for customers on fixed incomes that use a lower volume of water than the typical residential customer.
Indiana American also said its filing includes a “proposed Universal Affordability Tariff” that would provide “multiple tiers of discounts to address the affordability needs of different levels of household income.”
Under that proposed structure, eligible households would receive monthly bill discounts of between 30% and 80% for water service, Indiana American said.